CoChat
Sign Up
Cited by 648Economic Growth and ProductivityGlobal trade and economicsMonetary Policy and Economic Impact

The DOI matches its Crossref record; 61 of the 67 references it cites were found in a registry or an index.

“Productivity and Misallocation in General Equilibrium”

Open access
Baqaee, David Rezza, Farhi, Emmanuel·2020·The Quarterly Journal of Economics
DOI 10.1093/qje/qjz030
Open this paper in CoChat — free account

Abstract

This paper develops a general theory of aggregation in inefficient economies. We provide nonparametric formulas for aggregating microeconomic shocks in economies with distortions such as taxes, markups, frictions to resource reallocation, financial frictions, and nominal rigidities. We allow for arbitrary elasticities of substitution, returns to scale, factor mobility, and input-output network linkages. We show how to separately measure changes in technical and allocative efficiency. We also show how to compute the social cost of distortions. We pursue applications focusing on firm-level markups in the United States. We find that improvement in allocative efficiency, due to the reallocation over time of market share to high-markup firms, accounts for about half of aggregate TFP growth over the period 1997–2015. We also find that eliminating the misallocation resulting from the large and dispersed markups estimated in the data would raise aggregate TFP by about 15%, increasing the economy-wide cost of monopoly distortions by two orders of magnitude compared with the famous 0.1% estimate by Harberger (1954). These exact numbers should be interpreted with care because the data are imperfect and require substantial imputation.

Overview

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Integrity signals

Registry

Crossref · 10.1093/qje/qjz030

Cites

61 of 61 references verified0 citation errors · 0 not checkable

Statistics

Verification

Claims the paper makes

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

The self-check needs the paper’s full text.

Citations

Cites

Show all 67 references

Research works printed but not linked: 5

  1. Autor, The Fall of the Labor Share and the Rise of Superstar Firms, Quarterly Journal of Economics
  2. Baqaee, 2017, Productivity and Misallocation in General Equilibrium, 10.3386/w24007 · DOI
  3. Hall, 1990, Solow's Productivity Residual, 71
  4. Hall, 1967, Tax Policy and Investment Behavior, American Economic Review, 57, 391
  5. Harberger, 1954, Monopoly and Resource Allocation, American Economic Association, Papers and Proceedings, 44, 77

Cited by

Sorted by citations

Items 301–400 of 647

Related

See all

Metadata

Authors
Baqaee, D. R., & Farhi, E.
Affiliations
  • University of California, Los Angeles (US)
  • Harvard University (US)
ORCID
Farhi, Emmanuel
Venue
The Quarterly Journal of Economics
Publisher
Oxford University Press (OUP)
Published
2019-09-24
Volume
135
Issue
1
Pages
105-163
ISSN
  • 0033-5533 (ISSN-L)
  • 1531-4650
DOI
10.1093/qje/qjz030
OpenAlex
W2765215599
Cited by
648
References
67
Citations by year
2026: 99 · 2025: 110 · 2024: 91 · 2023: 95 · 2022: 72 · 2021: 64 · 2020: 58 · 2019: 28
FWCI
55.62
Type
journal article
Language
en
Open access
Licence
academic.oup.com/journals/pages/open_access/funder_policies/chorus/standard_publication_model (vor)
Locations
  • The Quarterly Journal of Economics (publishedVersion)
  • National Bureau of Economic Research (publishedVersion)
  • London School of Economics and Political Science Research Online (London School of Economics and Political Science) (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • London School of Economics and Political Science Research Online (London School of Economics and Political Science) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
Keywords
resource misallocation, allocative efficiency, technical efficiency, markups, total factor productivity growth, market share reallocation, factor mobility, financial frictions, nominal rigidities, tax distortions

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review